This research explores the challenges of adopting agile methods in multifunctional productdevelopment, studying the R&D division in a large international company. Using a qualitative method,we seek to understand how stakeholders experience and undertake this ongoing change. Over a 14-month period, in-depth interviews and meetings with managers from various units were conducted.

Our findings highlight the multifaceted challenges encountered in the transition towards agilemethodologies. Key barriers include organizational antagonism, lack of role models, establishingcross-organizational coordination, receiver capacity, and classic change management problems. Ourstudy underscores the need for nuanced managerial strategies to navigate these obstacles effectively.From formalizing new routines to acknowledging external constraints, managers must anticipate andaddress various challenges to ensure successful agile transformations.

The study adds to the current understanding of agile methodologies as new form of organizing R&D ina multifunctional product development setting. We offer insights into the stepwise adoption of agilepractices in multifunctional product development, making three key contributions: (1) identifyingobstacles in adopting agile methods, (2) suggesting areas for future research, and (3) providingpractical advice for managers overseeing multifunctional R&D projects.